IT trends

Self-employment trends

There is a worldwide trend towards self-employment since the turn of the new millenium (1).

According to the May 1993 edition of Australian Industry Trends by the Bureau of Industry Economics, the average number of people working in Australian small business has increased from 2.23 million in 1985-86 to 2.6 million in 1991-92. In 1996, the numbers had reached 3 million (see Figure 1).

Figure 1. Australian self-employment trends.

As stated on page 101:

"During 1991-92, an average of 2.6 million persons worked in Australian small businesses, representing slightly more than half (51 per cent) of total business employment...."

For the 1991-92 period, approximately 35.4 per cent of total small business employment represented business owners, including self-employed individuals and employers (see Figure 2).

Figure 2. Percentage of the Australian workforce who were business owners in 1991-92.

The main reasons for people turning to self-employment are (i) greater job security; (ii) unlimited income levels; (iii) work smarter, not harder; (iv) to get the respect and credit they deserve for the work they put in for society; (v) reach meaningful goals in life and so increase the purpose of why they are here; and (v) the opportunity to work less hours while getting paid more once the business structures are in place and operating properly.

However this is only possible for people who have the entrepreneurial qualities to be self-employed. So when you hear someone like Mr David McClure, president and CEO of the US Industry Association, say:

"In hard times, companies are forced to cut back on staff, leaving thousands of former employees free to pursue their dreams, to innovate and to create new companies." (Internet.au: Did they say that?. February/March 2003, Issue 88, p.23.)

not everyone will have the entrepreneurial and business skills to innovate and create new companies for selling new services and/or products. In fact, most ex-IT employees and other former staff members will usually end up on the queue for receiving social security handouts.

To help better prepare people for creating their own businesses, click here.